The slow shift toward data-driven corporate compliance programs has a new accelerant: the government. Now, companies are scrambling to figure out how to meet the latest expectations.
The U.S. Justice Department in June instructed its prosecutors to ask companies that come under investigation whether their compliance teams have access to data, if it is being used to monitor for risks, and test policies and procedures. Authorities also have shown in recent settlements a willingness to cut penalties for companies that have implemented data analytics or monitoring tools into their compliance programs.
The push is incentivizing compliance officers to find ways to access financial and operational data, and adopt technology to better screen for risks such as bribery, which can lead to enormous fines if undetected. Businesses have long used data to drive decision-making in other areas of the enterprise, but adoption of analytics tools in compliance has been slow in part due to budget constraints, cultural hurdles and a lack of one-size-fits-all third-party solutions, compliance officers say.
The original full article can be found at wsj.com
(Photo: Al Drago/Bloomberg/Getty Images)